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INYATSI TAKES OVER AS ICC LEAD CONTRACTOR

26/11/2020 07:06:00 BY NTOMBI MHLONGO

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MBABANE – It’s official; Inyatsi Construction is now the lead contractor of the KISS International Convention Centre (ICC) project in Ezulwini.

This comes after the company and its two initial partners, Kukhanya (PTY) LTD and Stefanutti Stocks (PTY) LTD, who were part of the initial KISS Joint Venture, finally agreed to an amicable settlement regarding their status after government terminated the main contract a few weeks ago.

This publication is in possession of a correspondence addressed to the Principal Secretary (PS) in the Ministry of Economic Planning and Development, Bheki Bhembe, where it was stated that by agreement, Kukhanya and Stefanutti Stocks had agreed to sell their shareholding in the KISS Joint Venture.

Correspondence

In the correspondence, which is dated November 13, 2020, it was stated that effective immediately, Inyatsi will be the lead contractor.

“Inyatsi Construction has assumed the responsibility of continuing with the activities of the KISS project. Inyatsi will be assuming all responsibilities, obligations and entitlements,” read part of the correspondence.

The parties assured the ministry that the latest developments would not in any way affect the obligations or performance of the KISS Joint Venture.

It was also announced in the correspondence that the contractor’s newly-appointed representative was Wayne Levendale.

Another correspondence, dated November 17, 2020, was issued to subcontractors, notifying them of the settlement reached.

“You are therefore notified that as of November 13, 2020, Stefanutti Stocks and Kukhanya are no longer JV partners. The KISS JV continues as a going concern under the full leadership of Inyatsi Construction. Your current sub-contracts will remain in full force as per the original terms and conditions,” it was stated.

Furthermore, it was emphasised that the sub-contractors would be notified in due course of the new contractor’s representatives once the transition had been finalised, including the pertinent handovers as necessary.

Early in October, government dropped a bombshell when it announced that it had terminated the JV contract.

This was communicated through a letter written by PS Bhembe, stating that the KISS JV was expected to take whatever steps necessary in order to vacate the site and the works within 14 days.

However, early this month, this publication reported that the move by government to terminate the contract was being rejected by the KISS Joint Venture.

This was according to a letter which has been written to government (the employer) with regard to ending the contract which was Tender No. 210 of 2014/2015.

In the letter, the KISS JV labelled the attempt to terminate the contract as one ‘without merit and legally flawed.’

However, Inyatsi made it clear that it was not party to the action against governments in subsequent correspondence.

When sought for comment on the latest developments, the new contractor’s representative (Levendale) confirmed that an amicable settlement had been reached on the matter.

Reality

“Yes, Inyatsi is now the lead contractor of the KISS ICC project. Inyatsi bought the two companies out. The reality is that it had nothing to do with government. Government was just a casualty. So everything will now be on a willing buyer willing seller situation. The buyer and the seller are happy,” he said.

He confirmed that the amicable decision was reached two weeks ago and that the parties were still wrapping up a few logistics.

“We are now waiting for our employer to agree on a schedule and timelines going forward. Our team is ready, we’ve got our ducks in a row. All that is left is finalising a few logistics,” he said.

Meanwhile, Billy Howes, speaking on behalf of Stefanutti Stocks, asked not to comment on the matter as he said there was a need to consult first before doing so. “We are bound by a confidentiality agreement not to make any public disclosures on the issues that you require comment on. The nature of the prohibition is such that we would need to obtain the consent of all the parties before we can comment,” he said.

When the ministry was contacted on the matter, Communications Officer Thula Simelane confirmed the matter.

She said, “The ministry confirms that it is in receipt of a settlement agreement such that Inyatsi PTY LTD remains the only partner and consultations are ongoing”.